There's no big news in mortgage rates this week with mixed results involving incremental adjustments. HSH Associates reports that average combined mortgage rates for 30 year FRM loans increased to 4.62 percent, while rates for 15 year FRM loans moved down by three basis points to 4.02 percent. Average combined mortgage rates for 5/1 ARM loans also increased by one basis point to 3.52 percent.
Mortgage refinance options: More than low interest rates
If you're considering taking advantage of these low rates, consider refinancing your home. Traditional refinancing involves paying off your mortgage with another at a lower mortgage rate. By far the most popular refinancing option, it isn't the only way to improve your finances with a mortgage refinance:
- Cash out for debt consolidation: Refinancing your mortgage to current mortgage rates with additional cash out for debt consolidation can help improve cash flow.
- Convert your 30 year mortgage to a 15 year mortgage: Reducing your mortgage repayment term from a 30 year mortgage loan to a 15 year mortgage loan can potentially save thousands of dollars in mortgage interest. Use online mortgage calculators for estimating your savings. Reducing your mortgage repayment term provides two ways to save; you'll refinance to a lower mortgage rate while minimizing the amount of interest paid over time.
- Reverse mortgage loans for seniors: These loans allow homeowners aged 62 and above to draw against their home equity without making mortgage payments. The reverse mortgage is first used to pay off any existing mortgage or home equity loans, and a percentage of the balance can be drawn against remaining home equity. Homeowners can receive cash payments monthly, in a lump sum at closing, or via a combination of these two options. Reverse mortgages aren't for everyone; consult your estate planner or financial advisor to learn how (or if) a reverse mortgage can work for you.
Comparing mortgage quotes and consulting with your financial advisor can help with identifying the mortgage loan or home refinance options best meeting your needs.
Our live database of current mortgage rates can help you find the best mortgage rates in your area.